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IBFX Hedging back in demo

  • Post #1
  • Quote
  • First Post: Dec 14, 2009 10:39am Dec 14, 2009 10:39am
I got an alert from IBFX in my demo account saying that they'd turned hedging back on for demo accounts. The catch is that while you can hedge (i.e. be long and short simultaneously the same pair), the combined longs and shorts would be netted out when interest is paid every day. I think that's at 1700 EST.

Anyone else get this alert? I can't find and mention of it on the IBFX web site.
You are in a maze of twisty little passages, all alike.
  •  onu
  • | Joined Feb 2006 | Status: superior senior member | 746 Posts
I tested it and it worked, BUT it leads to losses in the case u don't be able to close the hedge in profit before 5 p.m.
Pretty useless for EA with hedges, babysitting again required


Another pathetic and desperate attempt at attracting traders back.

Beat it!

We are long gone and have moved to trading UK brokers from now on.
  •  onu
  • | Joined Feb 2006 | Status: superior senior member | 746 Posts
Quoting BurgerKing


Another pathetic and desperate attempt at attracting traders back.

Beat it!

We are long gone and have moved to trading UK brokers from now on.

Exactly and i like it there in the UK, the island of the braves and free
Quoting onu
....u don't be able to close the hedge in profit before 5 p.m.
Pretty useless....
Does that mean you can hedge, but you can only close the hedge at 5pm ?? Not before AND not after ??

OK, that is one bonus that I would have to PASS on !!
  •  onu
  • | Joined Feb 2006 | Status: superior senior member | 746 Posts
Quoting Price
Does that mean you can hedge, but you can only close the hedge at 5pm ?? Not before AND not after ??

OK, that is one bonus that I would have to PASS on !!

NO, u can close a hedge whenever u want, BUT IBFX wipes out all open hedges @5p.m. every day!!

Famous NFA where are u to protect the traders from such a nonsense?
Quoting onu
NO, u can close a hedge whenever u want, BUT IBFX wipes out all open hedges @5p.m. every day!!

Famous NFA where are u to protect the traders from such a nonsense?
Day Hedging!! - Pretty damn useless!! If you open a hedge for any reason what do you do at 5pm if you still need it? Answer: NOTHING because IBFX will close it for you! - Ain't that nice of them. (PFGBest has the same system)
If it is useless for you - you don't have to use it, pretty simple. For me it can be usefull, it is better to have such possibillity. So I am happy that they decided to introduce it.
Regards
Quoting mario
If it is useless for you - you don't have to use it, pretty simple. For me it can be usefull, it is better to have such possibillity. So I am happy that they decided to introduce it.
Regards
More power to ya! - I'd rather hedge where I dont have to keep looking at my watch.
Quoting Aja
More power to ya! - I'd rather hedge where I dont have to keep looking at my watch.
Of course it depends on your trading style. I'm generally done before 3 pm EST and don't start before 1 am EST, so don't care for swap time. Intraday hedging can only be good for quick counter trend scalps.
Good trading to all
  •  onu
  • | Joined Feb 2006 | Status: superior senior member | 746 Posts
Quoting mario
If it is useless for you - you don't have to use it, pretty simple. For me it can be usefull, it is better to have such possibillity. So I am happy that they decided to introduce it.
Regards

Good luck!

Be assured , i don't use it, i don't even use IBFX or any other NFA slave broker anymore for live trading. All accounts moved to UK and AUS some months ago....

---------------------------------------------
http://www.myfxbook.com/members/pc8multifx
What UK brokers are you guys/girls using? I tried Alapari UK and they rejected me for being a U.S. citizen.
Here is the notice from IBFX explaining how it is working:

http://independentafinanciara.ro/blog/?p=248
If you're not part of the solution then you're part of the problem.
Quoting onu
I tested it and it worked, BUT it leads to losses in the case u don't be able to close the hedge in profit before 5 p.m.
Pretty useless for EA with hedges, babysitting again required
Can't you program your EA's so the hedges close automatically? Actually, this might be the very thing I'm looking for. And, if that doesn't work, I'm preparing to start hedging on a separate (IBFX) account, although it won't help in terms of reducing any margin calls ... which effectively gets canceled out. If that doesn't work? I'll consider opening an account overseas.
FXDD is now NFA.. And guess what they are doing next?

FXDD Receives In-Principal Approval to open EU Operation


Thats basically saying, NFA paper stink and we prefer to operate elsewhere to get away from NFA crap rules.

Hmm..
Either NFA gotten tough on rules/regulations and became Trader Friendly, or NFA rules are pushing traders away and brokers are running after the traders.. in my opinion, its the latter... we traders have long moved out of USA/NFA brokers ...
Oh, by "netting" out the hedged trades, does that mean they close out one trade or both trades? If it's only one trade, then you have to worry about the trade still left open. If it's both trades, then it shouldn't matter. In which case the only thing you've lost is the point spread you had to pay to open up each trade. If that's all IBFX is doing, and they net out all hedges at 5 pm, so what? Better that than to have an open trade swing in the wrong direction ... that is, if you're not watching it.
Netting means 1 Lots LONG and 2 Lots SHORT become 1 Lot SHORT. As simple as that. Or 1Lot LONG and 1 Lot SHORT becomes no position in the market.
  • Post #18
  • Quote
  • Edited 8:07pm Dec 15, 2009 7:52pm | Edited 8:07pm
Yeah, I think that's what I mean. I just didn't take into account the possibility of multiple trades and "varying" lot sizes. I was thinking more of your second example there.

Thanks.
  • Post #19
  • Quote
  • Last Post: Dec 15, 2009 7:54pm Dec 15, 2009 7:54pm
Is there a CLOSEBY method at IBFX? Last time I traded there, they dont and even refuses to implement this functionality.

CLOSEBY is a method for closing a HEDGE using the Price of the other position as exit price, example:

#1 SELL @ 1.4682
#2 BUY @ 1.4558
Current ASK/BID = 1.4540/1.4538

If we close these two positions simultaneously, we'd get:
#1 SELL @ 1.4682, closed at 1.4540 = +142 pips
#2 BUY @ 1.4558, closed at 1.4538 = -20 pips
TOTAL: +122 pips

However, using CLOSEBY, we'd get:
#1 SELL @ 1.4682, closed at 1.4558 = +124 pips
#2 BUY @ 1.4558, closed by #1 = 0 pips
TOTAL: +124 pips

As you see, using CLOSEBY will give you 2 pips more profits. You only pay the spread for 1 position of the hedge - not 2.

The difference is bigger when used on a bigger spread pairs like GBPUSD or GBPJPY!
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